Gulf Coast fishermen brace for a man-made disaster

Louisiana's $2.4 billion fisheries at stake

By

MattAndrejczak

SAN FRANCISCO (MarketWatch) -- The Gulf Coast fishing industry, financially whipped by four hurricanes since 2005, is bracing for a man-made calamity.

Oil gushing from an out-of-control well following an April 20 rig blast in the Gulf of Mexico poses a severe threat to the livelihood of Louisiana's commercial fishers, who were allowed to get an early jump on shrimp season Thursday under a special state-government order.

With the spill still spreading, it's impossible to estimate its eventual impact on local fisheries. But the stakes are undeniably high.

Louisiana is the No. 1 provider of shrimp, oysters, crab and crawfish in the United States, producing 33% of America's seafood. These shellfish add $2.4 billion a year to the state's economy, according to the Louisiana Seafood Promotion & Marketing Board.

What's more, if the slick is not contained, it could cost many jobs. The seafood industry accounts for 1 of every 70 jobs in Louisiana.

Luck may be on their side.

"It looks like it [oil] may stay east of the Mississippi [River]," said Ewell Smith, executive director of the Louisiana Seafood Promotion & Marketing Board. "We'll have a better feel in the next couple days."

This could save the state's commercial fishers from financial ruin -- 77% of their total catch comes from waters west of the Mississippi River, he added.

Smith stressed consumers shouldn't be worried about the safety of Louisiana seafood. There is plenty already caught and frozen that is safe to eat.

Shrimp is Louisiana's biggest money-maker with an economic value of $1.3 billion, followed by oysters at $317 million and crabs at $293 million.

In 2008, fishermen caught 90.4 million pounds of shrimp, 207 million pounds of oysters and 52 million pounds of crab, according to the seafood promotion board.

Commercial fishermen in neighboring Mississippi, Alabama, Texas and Florida are also fretting over the spill's possible impact on their operations.

"We spent million upon million of dollars rehabilitating the oyster reefs, and they just started producing last year," said Larry Simpson, executive director of the Gulf States Marine Fisheries Commission. "I just can't imagine what all of this is going to do."

Simpson said Hurricane Katrina wiped out 90% of the oyster population in certain parts of Gulf Coast. In Louisiana, hurricanes Katrina, Rita, Ike and Gustav caused more than $1 billion in damaged fishing boats, docks and equipment, according to Smith.

In 2008, commercial fishing boats in the Gulf of Mexico harvested 1.27 billion pounds of finfish and shellfish with a value of $659 million, according to National Oceanic and Atmospheric Administration data.

The majority of reef fish species could be impacted if the oil sinks to reefs below the surface or invades inshore areas, according to the National Oceanic and Atmospheric Administration. There are 42 fish species in the Gulf, living near coral reefs and rocky hard-bottom surfaces usually deeper than 100 meters.

Some fishermen already are taking legal action, filing a class-action suit Thursday in the U.S. District Court for the Eastern District of Louisiana.

"The timing of the spill could not be worse, in that this is a peak spawning and nesting season for many species of fish and other marine creatures," the suit says.

After the Bush administration was harshly criticized for its slow response to Hurricane Katrina, the White House's response to the oil spill baffles some close to the situation.

"It's been too slow. It should not have gotten to this point," Louisiana's Smith said.

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